Significantly the lower cost probably comes from a sub-par display that has rather low resolution for its size. My 4.8" phone has a 1280 x 720 display, almost the same resolution as Microsoft's 10" display. And no comparison to the iPad3...

At the current prices. No it wont. If they priced at kindle/nexus7 levels, then maybe. The only adv of surface is that it has MS Office. However MS is releasing an iOS version of office soon. So no reason to buy surface over ipad.